Republic of Estonia: 2023 Article IV Consultation-Press Release; and Staff Report

July 28, 2023

Preview Citation

Format: Chicago

Republic of Estonia: 2023 Article IV Consultation-Press Release; and Staff Report, (USA: International Monetary Fund, 2023) accessed November 21, 2024

Summary

Estonia has made remarkable progress over the past two decades, achieving steady convergence towards more advanced EU economies. However, signs of erosion in external performance have emerged in recent years, reflecting rapid growth in unit labor cost and real exchange rate appreciation. Russia’s invasion of Ukraine triggered a large rise in inflation, supply chain disruptions and slower growth in key trading partners in the Baltic region. In Estonia, these developments, combined with fiscal tightening in 2022, have led to a sharp economic downturn, while deceleration in productivity has exacerbated competitiveness erosion.

Subject: Fiscal policy, Inflation, International organization, Labor, Labor markets, Monetary policy, Prices, Taxes, Value-added tax, Wages

Keywords: Baltics, Data provision, Disinflationary effort, ECB interest rates, Financial asset, Global, Inflation, Labor market shortage, Labor markets, Policy mix, Transparency policy, Value-added tax, Wages

Publication Details

Pages:

89
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2023/275
Stock No:

1ESTEA2023001
ISBN:

9798400251047
ISSN:

1934-7685

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